EQUITY- BASED COMPENSATION

9 Months Ended

Sep. 30, 2024

EQUITY- BASED COMPENSATION

EQUITY- BASED COMPENSATION

NOTE 9 – EQUITY- BASED COMPENSATION

The Company maintains certain stock-based compensation plans that were approved by the Company’s shareholders and are administered by the Compensation Committee of the Company’s Board of Directors. The stock-based compensation plans provide for the granting of stock options, time and performance based restricted stock units (RSU’s), among other awards to employees, non-employee directors, consultants, and service providers. The 2021 Omnibus Incentive Plan was amended on June 28, 2024, increasing the authorized shares by an additional 5,000,000. As of September 30, 2024, the Company had available 5,191,421 shares remaining for future awards under its Omnibus Incentive Plans.

Compensation Expense – The Company recognized the following compensation costs, net of actual forfeitures, related to restricted stock units (“RSUs”) and stock options:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Sales, general, and administrative	$	17	$	518	$	193	$	2,953
Research and development		(21)		21		40		138
Total equity based compensation - continuing operations		(4)		539		233		3,091
Total equity based compensation - discontinued operations		—		37		—		146
Total equity based compensation	$	(4)	$	576	$	233	$	3,237

Restricted Stock Units – We typically grant RSUs to employees and non-employee directors. The following table summarizes the changes in unvested RSUs from January 1, 2024 through September 30, 2024.

	Unvested RSUs
		Weighted
		Average
	Number of	Grant-date
	Shares	Fair Value
		$ per share
Unvested at January 1, 2024	9,681	$	251.12
Vested	(4,234)		233.09
Forfeited	(354)		274.16
Unvested at March 31, 2024	5,093		264.45
Forfeited	(3,269)		287.31
Unvested at June 30, 2024	1,824		221.93
Granted	516,163		0.29
Vested	(370,912)		0.24
Forfeited	(823)		232.42
Unvested at September 30, 2024	146,252	$	1.87

The fair value of RSUs related to employee grants that vested during the nine months ended September 30, 2024 was approximately $9 based on the stock price at the time. During the nine months ended September 30, 2024, there were 516,163 shares granted during the period for settled indebtedness for consulting and other services provided; in which the fair value at the time of vesting amounted to $89. As of September 30, 2024, there are 145,250 unvested shares that require the achievement of certain milestones to be met which have not yet been achieved and compensation expense for all other unvested shares amounted to $148 which is expected to be recognized over a weighted average period of approximately 1.4 years.

Stock Options – Our outstanding stock options were valued using the Black-Scholes option-pricing model on the date of the award. There was no stock option grant activity during the nine months ended September 30, 2024. A summary of the status of stock options activity since January 1, 2024 and at September 30, 2024 is as follows:

				Weighted
		Weighted		Average
		Average		Remaining		Aggregate
	Number of	Exercise		Contractual		Intrinsic
	Options	Price		Term		Value
		$ per share
Outstanding at January 1, 2024	13,729	$	421.51
Expired	(2,778)		330.74
Forfeited	(417)		621.60
Outstanding at March 31, 2024	10,534		437.52	1.4	years	$	—
Expired	(3,929)		570.27
Outstanding at June 30, 2024	6,605		358.81	0.4	years	$	—
Expired	(6,073)		344.99
Outstanding at September 30, 2024	532	$	516.64	0.9	years	$	—
Exercisable at September 30, 2024	532	$	516.64	0.9	years	$	—

The intrinsic value of a stock option is the amount by which the current market value or the market value upon exercise of the underlying stock exceeds the exercise price of the option.